Silent Real Estate Investing

Authentic Business Adventures Podcast

Thomas Castelli - Hall CPA On the Major Tax Value of Investment Real Estate: "When you buy a property, there's a noncash expense called depreciation. It's one of the biggest tax benefits of investing in rental real estate, and that's true whether you buy a rental property directly or whether you do it through a syndicate or fund." In the world of investing, you have a lot of options. One investment that has proved timeless is real estate. The globe is only so big, and owning a piece of it can be a profitable venture. But what are the tax implications of owning real estate? Thomas Castelli of Hall CPA dives deep to illustrate what are some tax strategies to save on taxes and make real estate a worthwhile investment. We'll also touch on some advanced tax strategies, including the benefits of depreciation and cost segregation studies, and how they can meaningfully reduce your taxable income. Thomas will share insights on navigating the ever-changing interest rates, the strategic use of tax planning, and the essential role of a proactive tax strategist. Plus, he’ll offer practical tips on identifying reliable sponsors and tax advisors, ensuring you maximize your investment returns while minimizing tax liabilities. Listen as Thomas lays out a plan for where to invest, how to invest and some tax strategies to make sure you get to keep most of your profit. Enjoy! Visit Thomas at: http://www.therealestatecpa.com/ Podcast Overview: 00:00 Attended real estate association, learned about syndication. 06:04 Creating value through strategic commercial real estate investments. 09:42 Review sponsor's track record before investing. 12:44 Depreciation helps shield rental income from tax. 15:58 Depreciation recapture on $200,000 capital gain. 18:54 Depreciation calculation for $1 million property. 23:24 Property report details, desktop study for smaller properties. 26:55 Adapting tax reporting for past expenses possible. 29:29 Save $10,000 in taxes with tax strategist. 31:05 Leverage network, seek recommendations, vet through online content. 37:01 Joining community and listening to podcasts helpful. 39:28 Real estate plans changed due to COVID. 43:21 Avoid sponsors with consistent underperformance and issues. 44:47 Sponsors tested by asking extra questions. 49:53 Business success stories with sponsor acknowledgements and gratitude. Podcast Transcription: Thomas Castelli [00:00:00]: Typically, these these cost segregation studies that you could there's they're done 1 or 2 ways, typically. The first way, is you would have an engineer who who is well versed in this in in this area. They would come down and do a they would survey your property. Think about almost like an inspection. Right? They're coming down. They're surveying the property. They're taking inventory of every component, and they're gonna go back to their office and they're gonna give you a report. That report's gonna say, okay. Thomas Castelli [00:00:23]: Well, your property has it's gonna give you, like, an itemized report. Okay. This this amount of property is gonna be 27 and a half year property. This amount's gonna be 15 year. This amount's gonna be 5 year, and that 5 15 years was eligible for bonus appreciation. James Kademan [00:00:37]: You have found Authentic Business Adventures, business program that brings you the struggle stories and triumph and successes of business owners across the land. Downloadable audio episodes can be found on the podcast link from the draw in customers.com. We are locally and written by the Bank of Sun Prairie. Calls on call extraordinary answering service as well as the bold business book. And today, we're welcoming slash preparing to learn from Thomas Castelli of Hall CPA. We're talking real estate, and we're talking taxes, which I guess in the end, if you're making money with real estate, taxes go right there. So, Thomas, how are you doing today?